Hot Currency Trade of the Day - 11/4/08
Entry: Long EUR/JPY on a break above 128
Target: 135.17 (50% fib of 156.82-113.60)
Stop: Below 126.50
Stock markets in Europe are picking up pace while DJIA and S&P 500 futures are signaling a strong open today, suggesting an improvement in investor sentiment that could benefit the JPY crosses throughout the day. Focusing on EUR/JPY, the pair continues to consolidate just under trendline resistance on the hourly charts at 128. I'm looking for EUR/JPY to break above that level to target 135.17 (the 50% Fibonacci retracement level of 156.82-113.60). However, with the ECB scheduled to announce their rate decision on Thursday morning, I would try to exit the trade before then.
Any trade recommendations, opinions, analyses, prices, or other information contained on this website provided to you by Daily FX or its affiliates represents general market commentary and does not constitute investment advice. Investment in foreign currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall, and past performance is no assurance of future performance.
The information provided here is for informational purposes only and is not real-time data. Accordingly Daily FX or its affiliates make no warranties or guarantees in respect of the content. The general market commentary provided do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations provided here. Hence, Daily FX or its affiliates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Daily FX and its affiliates highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from independent sources.